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Needham analyst Kyle Peterson downgraded consumer credit reporting agency TransUnion (NYSE:TRU) to Hold from Buy on Wednesday on the expectation that rival Equifax (NYSE:EFX) likely will “be able to maintain its premium valuation versus TRU over the next 12 months.”
Peterson reiterated his Buy recommendation on Equifax (EFX), as the company stands to benefit more from lower interest rates than TransUnion (TRU). That’s because EFX’s “business mix is more leveraged to lower rates given the larger mortgage exposure.”
He also pointed to “a better quality of earnings, more disciplined capital allocation/M&A strategy, and stronger balance sheet make” relative to (TRU).
Seeking Alpha’s Peer tab compares numerous metrics of (EFX) and (TRU).
In Wednesday morning trading, (TRU) edged down 0.5%, while (EFX) gained 0.8%.
